What Makes Alphabet (GOOG) a Long-Term Bet?

GreensKeeper Asset Management, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Value Fund has ended the quarter with a +4.0% gain, taking the YTD return to +0.2% net of fees and expenses. The US dollar continued to pose a challenge, negatively impacting performance by -3.7% so far this year. The year’s market rally was primarily led by AI, crypto, and speculation. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, GreensKeeper Asset Management highlighted stocks such as Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services operating through Google Services, Google Cloud, and Other Bets segments. The one-month return for Alphabet Inc. (NASDAQ:GOOG) was 5.03%, and its shares gained 61.84% over the last 52 weeks. On December 16, 2025, Alphabet Inc. (NASDAQ:GOOG) stock closed at $307.73 per share, with a market capitalization of $3.715 billion.

GreensKeeper Asset Management stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its third quarter 2025 investor letter:

“The top contributor to the Value Fund in Q3 2025 was Alphabet Inc. (NASDAQ:GOOG) +37.3%. As noted in our September client update, the stock reacted positively to a favourable court ruling in the search antitrust case. While GOOG continues to face a separate antitrust case related to its advertising technology business, we view the potential impact as limited given that ad-tech represents only a modest portion of the company’s overall profits.

More significant to Alphabet’s future earnings power, the company’s Gemini AI models are gaining momentum. In September, Gemini gained a meaningful share of Global Search Instances at ChatGPT’s expense. Last week, the company launched Gemini Enterprise, which adds enterprise security, privacy, and compliance requirements to GOOG’s top-end models while integrating them into enterprise data warehouses. We continue to believe that Alphabet’s distribution advantages, proprietary hardware and balance sheet provide it with long-term advantages against competitors in the AI market.

Despite periods of negative headlines and share price volatility, we have remained long-term shareholders of GOOG. Over the past five years, Alphabet’s annual earnings have tripled—from roughly $40 billion to $120 billion—and so has its share price. We continue to view the company as one of the most competitively advantaged platforms in global technology.”

Alphabet Inc. (NASDAQ:GOOG) is in the 7th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 186 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the third quarter which was 178 in the previous quarter. In the third quarter of 2025, Alphabet Inc. (NASDAQ: GOOG) achieved its first-ever $100 billion in revenue. While we acknowledge the risk and potential of Alphabet Inc. (NASDAQ:GOOG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALPHABET INC. (NASDAQ:GOOG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Alphabet Inc. (NASDAQ:GOOG) and shared the list of top AI and technology stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.